Diadem Resources Ltd.

Diadem Resources Ltd.

November 15, 2010 11:48 ET

Diadem Increases Acreage and Updates African Transaction

MONTREAL, QUEBEC--(Marketwire - Nov. 15, 2010) - Diadem Resources Ltd. (TSX VENTURE:DRL) -

Diadem Resources Ltd. ("Diadem" or the "Company") announces today that it has given notice to Darnley Bay Resources Ltd. ("Darnley Bay") that it intends to execute its option to increase Diadem's interest in the Franklin Property. The acreage is located to the south and southeast of the Parry Peninsula, near Paulatuk NT, where DRL and DBL are presently working in a 50/50 joint venture. The new acreage covers 10 prospecting permits awarded to Darnley Bay in 2009 and 2010, totaling 504,700 acres (2,040 km2). The expanded joint venture over the new acreage applies to diamond exploration and production only. The rights to other commodities remain with Darnley Bay. During their previous partnership, high-resolution aeromagnetic surveys covered this area in 2005. Ground magnetic surveys were conducted over eight targets in 2000 and in 2010 by Darnley Bay. Kimberlite mineral samples have been collected at different stages of the previous diamond exploration. This increase in acreage will provide the Joint Venture with additional targets for a large scale drilling program to be announced and executed during the 2011 drilling seasons (which is scheduled to commence in March and continue through the summer and fall seasons). A preliminary report submitted by Aurora Geoscience is encouraging and suggests that more drilling must be carried out. 

Diadem also announces today that it is in the process of finalizing its due diligence, obtaining a NI 43-101 report and preparing for a private placement all in relation to its previously announced pending acquisition of diamond producing assets in Africa (additional information on such potential acquisition is set forth in DRL's press release of October 13, 2010). 

About Diadem Resources Ltd.

Management of Diadem is focused on acquiring near-production mining opportunities in North America and Africa, especially those related to diamonds and gold. Its principal current activity is diamond exploration in the Franklin Bay area of the Northwest Territories. On that project Diadem operates a joint venture with its fifty percent (50%) partner Darnley Bay. Twenty potential drill targets have been identified on the Parry Peninsula, which currently constitutes the Franklin joint venture project area. Ground magnetic surveys over three of the targets have been completed in 2010. Additional surveys over another 38 targets are planned for 2011. When this is completed, Diadem will finalize its drilling program for the 2011 drilling seasons. Drilling of four targets in 2010 located three new kimberlite pipes, for a total of thirteen in this emerging district. All permits regarding the joint venture are in place for 2010 to 2012 and a proper campsite is being investigated in order to benefit both joint venture partners. Diadem recently entered into a revised joint venture arrangement with Darnley Bay Resources Limited, details of which can be found in Diadem's press release of July 9, 2010 (found under the Company's profile on SEDAR).

Additional information about Diadem Resources Ltd. may be found on its web page (www.diademresources.com) and under Diadem's profile on www.sedar.com.

Cautionary Statement

This release includes certain statements that may be deemed "forward-looking statements". All statements in this release, other than statements of historical facts, that address future production, reserve potential, exploration drilling, exploitation activities and events or developments that the Company expects are forward-looking statements. Although the Company believes the expectations expressed in such statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may differ materially from those in the statements. There are certain factors that could cause actual results to differ materially from those in forward-looking statements. These include market prices, exploitation and exploration successes, continued availability of capital and financing, and general economic, market or business conditions. Investors are cautioned that any such statements are not guarantees of future performance and actual results or developments may differ materially from those projected in the forward-looking statements. For more information on the Company, investors should review registered filings at www.sedar.com.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Contact Information